Page 126 - AAA Integrated Workbook STUDENT S18-J19

Chapter 93 4

 identify and describe audit procedures (including substantive and tests of
control) to obtain sufficient, appropriate audit evidence from identified sources

 assess and describe how IT can be used to assist the auditor and recommend
the use of Computer-assisted audit techniques (CAATs) where appropriate

 identify additional information that may be required to effectively carry out a
planned assignment

 apply further considerations and audit procedures relevant to initial
engagements

 apply analytical procedures to financial and non-financial data

 explain the specific audit problems and procedures concerning related parties
and related party transactions

 recognise circumstances that may indicate the existence of unidentified related
parties and recommend appropriate audit procedures

 evaluate evidence provided or recommend the audit evidence expected to be
available to:

(i) support the financial statement assertions and accounting treatments
(including fair values)

(ii) support disclosures made in the notes to the financial statements

 explain how the auditor’s responsibilities for corresponding figures, comparative
financial statements and ‘other information’ are discharged

 explain the auditor’s main considerations in respect of social and environmental
matters and how they impact on entities and their financial statements (e.g.
impairment of assets, provisions and contingent liabilities)

 recognise when it is justifiable to place reliance on the work of an expert (e.g. a
surveyor employed by the audit client)

 evaluate the potential impact of an internal audit department on the planning
and performance of the external audit

 assess the appropriateness and sufficiency of the work of internal auditors and
the extent to which reliance can be placed on it

 recognise and evaluate the impact of outsourced functions on the conduct of an
audit

and answer questions relating to these areas.

122